Hazard insurance literally insures the owners of new 1 BHK flats in Pune against huge property damages caused by storms, earthquakes, fire or any such natural disaster. This policy covers the property and compensates the owners when such a disaster occurs. But the concept of hazard insurances is often misunderstood, hence the homeowners must possess a proper knowledge about it. The following pointers will help you get a better understanding of this policy.

Homeowners’ Insurance is Different

Not all the damages caused due to natural disasters are covered under the homeowners’ insurance policy, and many of the calamities are unwarranted. But the hazard insurance is a more complete policy as it provides cover to the property against any and all the sources that cause damage to it. Explosion, vandalism, lighting, theft, etc. too are covered by the hazard insurance, which the homeowners’ insurance hardly does.

It is an Essential Protection

Basic variants of the hazard insurances do not cover any specific damage done to the property. Hence, an extra protection is essential and can be gained by paying a bit more investment on the cover. For example, basic hazard insurance won’t cover the damages done by an earthquake, and you need to get an earthquake cover separately in that case.

Monthly Mortgages Can Include this Cover

Mortgage lenders usually are interested in the protection of the owners’ new 1 BHK flats in Pune, which is their investment, and hence they recommend hazard insurances along with other policies. Most of the lenders will include the mortgage payments and insurance premium in a single payment, which makes it easier to keep track of your money.

There are Some Disadvantages Too

Hazard insurance is a common thing nowadays, and hence it has led to a lot of insurance providers not offering this policy anymore. The reason for this is the large number of claims done by property owners in major regions. There is also a high chance of not being able to claim a cover if you have already be compensated before.

It is Not Essential Always

It is true that the hazard insurance protects your property against calamities and supports you in case of such mishaps, but it is not really needed unless you have something of extreme value in your house. It may be the ultimate compensation for your damages or loss, but it does not come cheap too. Hazard insurance is expensive and hence you must think thrice before you buy one.